SB1366

THE CONTEXT: The Attorney General (AG) administers and oversees the Program, which enables persons to obtain limited access to Arizona's market to test innovative financial products or services or other innovations without obtaining a license or other authorization. An innovation is the use or incorporation of new or emerging technology or the reimagination of uses for existing technology to address a problem, provide a benefit or otherwise offer a product, service, business model or delivery mechanism that is not known by the AG to have a comparable widespread offering in Arizona (A.

WHAT THE BILL DID: The final vetoed version would modify the definition of innovation as the use or incorporation of a new or existing idea or a new or emerging technology or a new use of existing technology, including blockchain technology, to address a problem, provide a benefit or offer a product, production method or service. (Sec 1), define blockchain technology. (Sec 1), and make technical changes. (Sec 1).

WHY IT MATTERED: The practical reason for this bill was to make the government process for regulatory sandbox more definite and accountable. It would modify the definition of innovation as the use or incorporation of a new or existing idea or a new or emerging technology or a new use of existing technology, including blockchain technology, to address a problem, provide a benefit or offer a product, production method or service. (Sec 1), and would also define blockchain technology. (Sec 1), rather than leave the current rule unchanged.